The stock of Cargo Therapeutics
CRGX,
a clinical-stage biotech specializing in cancer treatments, rose 2.2% in its trading debut on Friday.
The deal priced at $15 a share, the low end of the proposed range. The company sold 18.8 million shares to raise $282 million at a valuation of $580.5 million.
JPMorgan, Jefferies, TD Cowen and Truist Securities were the underwriters on the deal. They have a 30-day option to purchase up to 2.8 million additional shares.
Proceeds will be used to fund clinical development and R&D and for working capital and other general corporate purposes.
The company is pre-revenue and loss-making, as is often the case for biotechs with no approved drugs.
The stock is trading on Nasdaq under the ticker “CRGX.”
The positive performance comes after other recent deals have floundered from the start or performed well on day one, only to languish in the aftermarket.
The most recent deal to disappoint was that of German sandal and clog maker Birkenstock Holdings Plc
BIRK,
which has not yet reached its IPO issue price of $46. That stock was last trading at $40.15.
For more, read: Arm, Instacart and Klaviyo’s earnings offer another reason for IPO buyers’ remorse
The Renaissance IPO exchange-traded fund
IPO
has gained 27.8% in the year to date, while the S&P 500
SPX
has gained 14.7%.
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